PETALING JAYA: Industrial space solutions provider AME Elite Consortium Bhd and Majestic Builders Sdn Bhd are jointly developing an integrated industrial park in Seberang Perai Tengah, Penang, with gross development value (GDV) of RM1 billion.

AME Elite’s wholly owned subsidiary Northern Industrial Park Sdn Bhd and Majestic Builders have formed a special purpose vehicle (SPV) to undertake the industrial park development. The SPV, Suling Hill Development Sdn Bhd, today entered into a sale and purchase agreement (SPA) with landowner Waz Lian Holdings Sdn Bhd to acquire a 175.98-acre freehold development site for RM130 million.

The acquisition will be satisfied partly with cash of RM80 million, while the remaining RM50 million is to be settled in-kind via industrial properties from the intended industrial park development within 24 months upon fulfilment of conditions of the SPA.

AME Elite intends to replicate its proven fully integrated industrial park model in Penang, with custom-built industrial properties amply supported by fit-for-purpose workers’ dormitories. AME Elite’s expertise includes developing integrated industrial parks of i-Park@Senai Airport City and i-Park@Indahpura.

Majestic Builders is a significant division of Majestic Group, which as diversified businesses across property development, hospitality, leisure, and food and beverage sectors in Malaysia as well as overseas.

The group recently completed Annex @ Cheras, Residensi Medan @ PJS4 and Bukit Rampai Industry Park @ Malacca. Its ongoing development projects include D’Cendana @ Bandar Tasik Kesuma, Selangor, as well as two serviced apartments developments, on Jalan Klang Lama and off Jalan Tunku Abdul Rahman in Kuala Lumpur.

AME Elite group managing director Kelvin Lee Chai said: “This acquisition is consistent with AME Elite’s strategy of expanding our i-Parks beyond Johor.”

The proposed acquisition is targeted to be completed by the third quarter of 2023.